Restaurant insurance

What restaurant types are eligible for insurance?

Restaurants are as unique as their menus. Luckily, insurance providers are happy to provide a customized restaurant insurance policy to all types of restaurant owners, including the following:

• Bakeries
• Bars and pubs
• Cafes
• Cafeterias
• Catering services
• Coffee shops
• Delis
• Diners
• Fast-food restaurants
• Fine-dining restaurants
• Food trucks
• Take-out or delivery-only establishments
• And more!

Contact a broker from BrokerLink to learn more about which restaurant types are covered.

What does restaurant insurance cover?

A comprehensive restaurant insurance policy for dine-in restaurant owners and dine-out owners includes several types of policies and is an important part of risk management. To ensure you're comprehensively protected, business insurance includes the following:

Commercial general liability insurance

Food poisoning, slips and falls, and bodily injuries at your business are just a few of the many potential types of business liabilities you face. Commercial general liability insurance can help protect your restaurant against the day-to-day hazards that lead to expensive claims or lawsuits, including legal costs, medical fees, and any other expenses that may arise.

Business general liability insurance coverage is an essential component of all restaurant insurance as it is recommended to all restaurant owners regardless of the type of establishment they operate.

Host liquor liability

If your restaurant serves alcohol, then host liquor liability insurance is a must. Generally, host liquor liability will cover you in the event of a claim for personal injury or property damage, in which the consumption of alcohol plays a major role. Depending on your specific policy, the following may be covered when alcohol-related incidents occur as a result of an intoxicated customer:

• Legal fees, including attorney fees due to a lawsuit.
• The cost of damages if the court happens to find you to be the liable party.
• Settlements if you and/or the other party have decided to settle outside of court.

Liquor liability insurance coverage has a basic coverage limit. However, as a restaurant owner, you are able to purchase higher liability insurance limits to ensure you are sufficiently covered.

Commercial property insurance

A kitchen fire, water damage or natural disasters could devastate your business. Commercial property insurance covers your restaurant and its contents, from insured perils to equipment and fixtures to furniture and building materials.

In addition, the business property insurance portion of your restaurant insurance also helps cover the replacement or repair cost of equipment that has broken down from external sources.

Equipment breakdown insurance

Depending on the size of your business, you may want to consider adding equipment breakdown insurance to your policy. Although property insurance covers your building and the contents inside, such as equipment, it doesn’t cover equipment damage caused by internal factors.

Internal sources of damage include mechanical and electrical breakdowns, malfunctions to your boilers, air conditioners and refrigeration systems, computers, commercial gas stoves, and other equipment breakdowns. For example, if your refrigerator breaks down, equipment breakdown insurance can help cover the cost of replacing any spoiled food. Luckily, specific equipment breakdown insurance covers these types of business claims scenarios, ensuring that repair costs related to your equipment breakdown are covered.

In the meantime, check out our restaurant maintenance checklist to ensure the equipment you're working with is functioning correctly and safely!

Cyber Insurance

As restaurant owners throughout the restaurant industry rely more on technology, your risk for data theft increases. It’s important to protect any sensitive information that belongs to a third party, such as a customer or employee, from being compromised due to cybercrime.

This is where cyber insurance for businesses comes into play! Essentially, it helps you notify your customers and protect them from loss if hackers access your customer's credit card information. Keep in mind that this type of crime insurance is generally not included in a standard restaurant insurance policy. You'll need to add this coverage to your overall insurance policies for this type of additional protection.

Business Interruption insurance

The chance of experiencing an interruption to your business is real and can happen at any time. Many business owners have experienced closures due to storms, power outages, fire or even theft. While property insurance can cover the cost of replacing your building, equipment, or materials, what is in place to maintain your business cash flow in the meantime?

Business interruption insurance helps you get your business up and running again in the shortest time possible if you must close your restaurant for an extended period due to an insured property damage loss. Business interruption coverage can cover the costs of utilities and taxes, employee wages, lost business income, and rent payments. It is meant to protect restaurant owners from an unexpected insured event that impacts your restaurant location and its ability to serve food.

Business auto insurance

If your dine-in restaurant offers delivery services, business auto insurance coverage is a must. This type of commercial car insurance will protect you and your employees if they are involved in a car accident while operating one of your business vehicles.

For example, if delivery drivers accidentally knock over an outdoor light or cause third-party property damage to a customer's home or injuries, your food delivery driver's insurance will cover the cost of legal expenses, repairs, replacements, and any medical fees associated with the accident.

Insuring business vehicles under a specific commercial insurance policy is essential as a restaurant owner, given that your normal private auto insurance will not protect you or your employees if they are operating a vehicle with the intent of conducting business activities.

Food contamination insurance

Food safety is vital to all restaurants within the industry. But, sometimes, mistakes or unexpected events can occur, causing spoiled or contaminated food throughout your restaurant. Luckily, this type of restaurant insurance coverage will protect your business against recalls, intentional tampering, and other events that could impact your ingredients.

Product liability insurance

Product liability insurance provides coverage to restaurant owners who manufacture and distribute their own products. For example, this type of insurance policy will protect restaurant owners if a customer falls ill and claims they suffered food poisoning as a result of consuming a product they sold by covering the cost of medical expenses and other related fees.

Food truck insurance

Because food trucks don't operate out of a physical building like dine-in restaurants, restaurant insurance will look a little different. For the most part, you'll need to purchase commercial auto coverage and general liability insurance to ensure you have the right coverage for your business, which is standard for food truck insurance. General liability insurance will protect you from claims that may arise from property damage or bodily injury, it will also cover an equipment breakdown, and protect your actual ingredients as well.

Ready to get a restaurant insurance quote?

At BrokerLink, an insurance broker can help restaurant owners like you find the right insurance for their business and budget. We have the resources and expertise to answer your questions and take the time to understand your unique business needs. From there, we can help find a solution and explain the insurance options available to you. We want to make insurance easy so you can focus on serving up good times through exceptional food and beverages.

Whether you need coverage for business professional services, home business insurance, or another type of commercial property insurance, know that we'll do our absolute best to ensure you feel confident in your policies.

Find the right coverage for your restaurant business by getting a free and accurate quote with BrokerLink! We can also be reached by phone, email, or in person at one of our many locations in Canada. Contact us today!

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FAQs about insurance for restaurants

How much does restaurant insurance cost?

The cost of restaurant insurance or any type of hospitality business will vary significantly depending on numerous factors, including where the business is located, the specific risks the restaurant faces, the types of policies you choose to purchase, the total value of the equipment and other tools you use, and more. So, if you're looking to purchase a policy, we recommend reaching out to different providers in your area and asking for an insurance quote. This will allow you to compare costs and coverage options before opting for a policy that works best for your unique needs.

Is employee theft and dishonesty covered by restaurant insurance?

So, when it comes to employee dishonesty, is your business covered? The short answer is yes, restaurant insurance will cover you from various dishonest acts employees may conduct while working at your restaurant, including credit card forgery, serving food that leads to intentional food poisoning, and more. For specific scenarios, you should talk to your insurance provider for more information.

How do I make my business more accessible?

To make a small business accessible for your guests and employees, consider updating your property to ensure there are ramps at all entrances for wheelchair users. If possible, you may also consider installing elevators if your business is more than one level. Automated doors and accessible washrooms are also a must, especially if you own a restaurant in Canada. Other ways you can make your business accessible to those with disabilities include closed captions and alt texts on your website and social media pages for those who are visually impaired and hiring employees who know sign language.

How can I improve employee well-being?

To improve employee well-being, maintaining open communication is key for all members of your staff. They should be able to speak to you about their job and their experience working at your organization in a safe environment where they feel like they are being heard. You'll also want to consider fostering a flexible work area where employees can collaborate and develop innovative ideas. Partnering with your local community and forming connections with people outside of your business is another great way to encourage your employees to engage in social responsibility activities and feel more fulfillment in their job role.

Where can I purchase health equity plans for my business?

Small business health equity plans are often available through your insurance company. If you already have business insurance coverage with a provider, you may be able to save on your health equity plans by purchasing your policy with them as well. Most insurance companies offer customers discounts when they bundle and purchase multiple coverages from them as a way of saying thank you for your loyalty. If health equity plans are something you're interested in purchasing for your employees, reach out to your provider or partner with a broker for more information.

How do I know I'm choosing the right insurance for my business?

You may be wondering, "How do I choose the right insurance policy for my business?" To start, you're going to want to evaluate your unique needs and budget as a business owner. This includes conducting a risk management plan and evaluating the types of risks your business faces on a daily basis. Once doing so, we recommend speaking with an insurance broker who can help you shop around for quotes and coverage options. Because brokers work independently, you can count on them to provide unbiased advice throughout your insurance journey to ensure you feel confident about the policies you purchase.

If you have any questions, contact one of our local branches.